Question
Hello, I thought I was doing this question correctly, but I think I messed up somewhere. #5 and #6 seem to be the same answer
Hello,
I thought I was doing this question correctly, but I think I messed up somewhere. #5 and #6 seem to be the same answer just in different order.
Question #6
"Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an average return of 12 percent and standard deviation of 25 percent. The average return and standard deviation of Idol Staff are 15 percent and 35 percent; and of Poker-R-Us are 9 percent and 20 percent" (Cornett et al., 2019, p. 281).
Before solving this problem, calculate the coefficient of variation. Show the coefficient of variation you have calculated for each stock.
this is what I came up with, but this is what I came up with for the previous question.
Stocks Average Std Dev COV
Poker-R-Us 9% 20% 20/9= 2.2
Idol Staff 15% 35% 35/15= 2.3
Rail Haul 12% 25% 25/12= 2.8
Previous question #5
Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 12 percent and standard deviation of 25 percent. The average return and standard deviation of Idol Staff are 15 percent and 35 percent; and of Poker-R-Us are 9 percent and 20 percent"
Same numbers as before...but asking for two different answers. When I look up the equations, it looks like the same. Can you help me? Or at least tell me where I messed up.
thank you
jenn
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